MENU PLACES PEOPLE PAPARRTTNNEERRSS PERFORMANCE PERFORMANCE (ENVIRONMENT) (ECONOMIC) Partners 2022 Progress Suppliers Tenants Customers Residential Owners, Occupiers and Serviced Apartment Residents Supplier Compliance Monitoring GRI We work closely with our suppliers to collect accurate and up-to-date information about their 308, 403, 414 environmental, social and governance practices and performance. HKEX Aspect B4, B5 Our e-Contractor List Management System is integrated with our vendor requisition process in Hong KPI B4.1, B4.2, B5.2, B5.3 Kong and the Chinese Mainland. This automated platform facilitates supplier selection, management and performance analysis and allows for timely updates of supplier information. For new suppliers to be included on the list of approved contractors, they must first complete self- assessment questionnaires to confirm that they have appropriate policies and systems in place to comply with our SCoC. We monitor the compliance status of suppliers on our approved contractors list on an ongoing basis. In addition to requesting regular self-assessments, we may also undertake supplier site visits, request that our suppliers obtain independent certification in accordance with internationally recognised standards, and submit environmental and health and safety management plans for our internal review. We continuously refine our performance management system for technical services providers. Any act of non-compliance or malpractice in the areas of health and safety, environment, procurement, quality and site management is recorded, and the technical provider will be subject to disciplinary action. In 2022, we conducted a comprehensive risk assessment of over 300 Tier-1 suppliers, identified as either critical suppliers, high-volume suppliers, high-spending suppliers or non-substitutable suppliers, to confirm their compliance with our SCoC and that there were no violations of human rights issues. These suppliers are based in Hong Kong, the Chinese Mainland and the U.S.A., and together they contributed to more than half of our procurement spend in 2022. According to our findings, none of these suppliers were considered “high risk” under our Enterprise Risk Management System (“ERM System”). There were also no incidents of human rights violations identified across our operations in 2022. Since 2021, our technical services and sustainable development department has conducted on-site inspections for selected technical contractors in Hong Kong. These inspections are essential to fulfilling our ISO 14001 environmental management system requirements. In 2022, no non-compliance or malpractice incidents were recorded during the on-site inspections. Through these inspections, several opportunities for continual improvement were identified and we are communicating with the responsible parties to initiate follow-up actions. SUSTAINABLE DEVELOPMENT REPORT 2022 129